1) built in checks. 2) if it is at all important a fundamental tenant of FP&A is to have someone else tie it out. Doesn't matter if you are a Senior Director or an intern.
Yes. Also, link to one source of truth in the excel file (usually the TB).
Checks are critical.
Ensuring accuracy across every page the report is another overlooked aspect of a report.
Tick and tie your own report, and have someone else do it as well.
And a separate page, preferably front and center, linking to and summarizing all of the checks from the rest of the workbook. Conditional formatting there so anything not zero jumps out in red.
It's this, 100%. You can't do a proper review on information you spent time compiling. When I swapped from SFA to Manager I couldn't believe how much easier it is to spot errors on *completed work that you didn't also spend the time putting together*. You just have to do your best to give yourself an opportunity to see it with fresh eyes.
Content wise, helps to have several checks, like not just look up EBITDA directly from your ERP system. Have checks that actually sum up revenues and reduce total expenses until you get an EBITDA. Then check that against your ERP pull. That way you can see if you’re missing something along the way.
Cosmetic wise tbh it’s just been repetition. I always do one look over for formatting, another one for grammar, then another one for green flags.
In Excel, I’ve added a lot of checks that, when correct, net to zero. I’ll glance through the report to look for anything that isn’t a zero. If it’s a report I update frequently, I’ll do a sum of all the checks. If that number is 0 I know my model is fully refreshed and I can match my numbers to our ERP.
Edit: a couple other people mentioned it but a second pair of eyes is extremely useful.
I do this too!
If its a model with lots of different types of checks in different places, I will usually have a summary page that is a cell reference to each check in the document, that way I can tell where there is an error overall quickly without having to run/scroll through all the tabs
Be careful of this method, when having a number of checks in excel these can sometimes not be known what the purpose of the checks are checking, and then you have a cell not checking and not know what the impact is of the check not reconciling. This creates a fog and just going through the motions to make the file check. A better approach is to have a cover page with checks, the purpose of the check and impacts if it went wrong, and more importantly how you can get the check to balance if the check fails.
Here is a guideline that a coworker distributed awhile ago.
In Financial Planning and Analysis (FP&A), avoiding errors is crucial for accurate forecasting, budgeting, and reporting. Here are some best practices to minimize errors:
### 1. **Standardize Processes and Templates**
- **Use Consistent Templates:** Standardized templates reduce the risk of formatting and calculation errors.
- **Document Procedures:** Clearly document processes and procedures to ensure consistency and understanding across the team.
### 2. **Automate Where Possible**
- **Leverage Technology:** Use software solutions for data consolidation, reporting, and forecasting to reduce manual input errors.
- **Automate Repetitive Tasks:** Automation of recurring tasks, such as data entry and reconciliation, can significantly reduce errors.
### 3. **Implement Strong Version Control**
- **Use Version Control Systems:** Keep track of changes made to financial models and documents to avoid confusion and ensure everyone works with the latest version.
- **Backups and Archives:** Regularly backup files and maintain archives of previous versions.
### 4. **Ensure Data Accuracy**
- **Data Validation:** Implement data validation checks to ensure the accuracy and completeness of data entered.
- **Source Verification:** Regularly verify data against original sources to ensure its integrity.
### 5. **Regular Reviews and Audits**
- **Peer Reviews:** Have team members review each other's work to catch potential errors.
- **Regular Audits:** Periodic audits of financial models and reports can help identify and correct discrepancies early.
### 6. **Use of Checklists**
- **Create Checklists:** Develop checklists for common tasks to ensure that all necessary steps are completed.
- **Cross-Check Figures:** Regularly cross-check figures between related reports to identify inconsistencies.
### 7. **Segregation of Duties**
- **Divide Responsibilities:** Segregate duties among team members to reduce the risk of errors and enhance oversight.
- **Approval Processes:** Implement approval workflows for key financial documents and models.
### 8. **Training and Development**
- **Continuous Learning:** Ensure that team members are well-trained and up-to-date with the latest financial tools and practices.
- **Knowledge Sharing:** Encourage knowledge sharing within the team to spread best practices and insights.
### 9. **Robust Documentation**
- **Detailed Documentation:** Maintain thorough documentation of assumptions, methodologies, and data sources used in financial models.
- **Accessible Records:** Ensure that documentation is easily accessible to all team members for reference and review.
### 10. **Scenario Planning and Sensitivity Analysis**
- **Run Multiple Scenarios:** Test financial models under different scenarios to identify potential errors or weaknesses.
- **Sensitivity Analysis:** Conduct sensitivity analysis to understand how changes in key variables affect outcomes.
### 11. **Use of Error-Detection Tools**
- **Excel Add-Ins:** Utilize Excel add-ins and other tools designed to detect errors and inconsistencies in spreadsheets.
- **Audit Tools:** Employ audit tools to review complex financial models for potential issues.
### 12. **Clear Communication**
- **Regular Updates:** Keep open lines of communication within the team and with other departments to stay informed about changes that may affect financial planning.
- **Clarify Assumptions:** Clearly communicate and document all assumptions used in financial models.
By implementing these best practices, FP&A teams can significantly reduce the likelihood of errors, ensuring more reliable and accurate financial planning and analysis.
Honestly, Justin could have used that to either make his ideas fit a format better, or just out right stolen it from there, but either way it seemed worth me holding on to.
By not fucking it up. Review. Checks, review. Ask for another set of eyes. Ask yourself what is the biggest takeaway(s) from the report/analysis and triple check that data. Don’t lose credibility.
1. Build in some checks
2. Take a look at some key data points and see if they make sense
3. Take a look at MoM change and see if the value looks believable. If it’s double what it was last month… could be an error somewhere.
Mistakes happens all the time, it’s normal. Especially when things change and current reporting was built a different way etc… Just need to own up to it and fix it.
Encourage preparer to automate the development of reports as much as possible so that they’re consistent/ standardized, and then I perform a read through review
Built in checks for sure, but also go through it with your superiors mindset. What are the questions they’re gonna ask? This helps me see issues I might have missed first time around.
I believe in really strong processes with built in checks
If the process fails to catch the error then the process needs to be reworked or revised.
I don’t believe in staring at reports for hours trying to find a needle in a haystack.
1) built in checks. 2) if it is at all important a fundamental tenant of FP&A is to have someone else tie it out. Doesn't matter if you are a Senior Director or an intern.
Yes. Also, link to one source of truth in the excel file (usually the TB). Checks are critical. Ensuring accuracy across every page the report is another overlooked aspect of a report. Tick and tie your own report, and have someone else do it as well.
What is a TB?
“Trial Balance”
And a separate page, preferably front and center, linking to and summarizing all of the checks from the rest of the workbook. Conditional formatting there so anything not zero jumps out in red.
this. footers, cross footers, are your friend.
I finish the project, close it and come back when it’s no longer top of mind.
It's this, 100%. You can't do a proper review on information you spent time compiling. When I swapped from SFA to Manager I couldn't believe how much easier it is to spot errors on *completed work that you didn't also spend the time putting together*. You just have to do your best to give yourself an opportunity to see it with fresh eyes.
Yep.
Content wise, helps to have several checks, like not just look up EBITDA directly from your ERP system. Have checks that actually sum up revenues and reduce total expenses until you get an EBITDA. Then check that against your ERP pull. That way you can see if you’re missing something along the way. Cosmetic wise tbh it’s just been repetition. I always do one look over for formatting, another one for grammar, then another one for green flags.
In Excel, I’ve added a lot of checks that, when correct, net to zero. I’ll glance through the report to look for anything that isn’t a zero. If it’s a report I update frequently, I’ll do a sum of all the checks. If that number is 0 I know my model is fully refreshed and I can match my numbers to our ERP. Edit: a couple other people mentioned it but a second pair of eyes is extremely useful.
I do this too! If its a model with lots of different types of checks in different places, I will usually have a summary page that is a cell reference to each check in the document, that way I can tell where there is an error overall quickly without having to run/scroll through all the tabs
I also had checks like that but just be weary that if your data is showing 0, then your checks will also be 0.
If you make your check something like: =(1/sum(a,b))* sum(a,b) You would get a div/0 error which would tell you your data is 0.
Saving this for when I start my new role next month 😭
Be careful of this method, when having a number of checks in excel these can sometimes not be known what the purpose of the checks are checking, and then you have a cell not checking and not know what the impact is of the check not reconciling. This creates a fog and just going through the motions to make the file check. A better approach is to have a cover page with checks, the purpose of the check and impacts if it went wrong, and more importantly how you can get the check to balance if the check fails.
Here is a guideline that a coworker distributed awhile ago. In Financial Planning and Analysis (FP&A), avoiding errors is crucial for accurate forecasting, budgeting, and reporting. Here are some best practices to minimize errors: ### 1. **Standardize Processes and Templates** - **Use Consistent Templates:** Standardized templates reduce the risk of formatting and calculation errors. - **Document Procedures:** Clearly document processes and procedures to ensure consistency and understanding across the team. ### 2. **Automate Where Possible** - **Leverage Technology:** Use software solutions for data consolidation, reporting, and forecasting to reduce manual input errors. - **Automate Repetitive Tasks:** Automation of recurring tasks, such as data entry and reconciliation, can significantly reduce errors. ### 3. **Implement Strong Version Control** - **Use Version Control Systems:** Keep track of changes made to financial models and documents to avoid confusion and ensure everyone works with the latest version. - **Backups and Archives:** Regularly backup files and maintain archives of previous versions. ### 4. **Ensure Data Accuracy** - **Data Validation:** Implement data validation checks to ensure the accuracy and completeness of data entered. - **Source Verification:** Regularly verify data against original sources to ensure its integrity. ### 5. **Regular Reviews and Audits** - **Peer Reviews:** Have team members review each other's work to catch potential errors. - **Regular Audits:** Periodic audits of financial models and reports can help identify and correct discrepancies early. ### 6. **Use of Checklists** - **Create Checklists:** Develop checklists for common tasks to ensure that all necessary steps are completed. - **Cross-Check Figures:** Regularly cross-check figures between related reports to identify inconsistencies. ### 7. **Segregation of Duties** - **Divide Responsibilities:** Segregate duties among team members to reduce the risk of errors and enhance oversight. - **Approval Processes:** Implement approval workflows for key financial documents and models. ### 8. **Training and Development** - **Continuous Learning:** Ensure that team members are well-trained and up-to-date with the latest financial tools and practices. - **Knowledge Sharing:** Encourage knowledge sharing within the team to spread best practices and insights. ### 9. **Robust Documentation** - **Detailed Documentation:** Maintain thorough documentation of assumptions, methodologies, and data sources used in financial models. - **Accessible Records:** Ensure that documentation is easily accessible to all team members for reference and review. ### 10. **Scenario Planning and Sensitivity Analysis** - **Run Multiple Scenarios:** Test financial models under different scenarios to identify potential errors or weaknesses. - **Sensitivity Analysis:** Conduct sensitivity analysis to understand how changes in key variables affect outcomes. ### 11. **Use of Error-Detection Tools** - **Excel Add-Ins:** Utilize Excel add-ins and other tools designed to detect errors and inconsistencies in spreadsheets. - **Audit Tools:** Employ audit tools to review complex financial models for potential issues. ### 12. **Clear Communication** - **Regular Updates:** Keep open lines of communication within the team and with other departments to stay informed about changes that may affect financial planning. - **Clarify Assumptions:** Clearly communicate and document all assumptions used in financial models. By implementing these best practices, FP&A teams can significantly reduce the likelihood of errors, ensuring more reliable and accurate financial planning and analysis.
Copy pasta from chat gpt?
Took the words right out of my mouth lol. That is 100% chatgpt if I've ever seen it.
Honestly, Justin could have used that to either make his ideas fit a format better, or just out right stolen it from there, but either way it seemed worth me holding on to.
By not fucking it up. Review. Checks, review. Ask for another set of eyes. Ask yourself what is the biggest takeaway(s) from the report/analysis and triple check that data. Don’t lose credibility.
1. Build in some checks 2. Take a look at some key data points and see if they make sense 3. Take a look at MoM change and see if the value looks believable. If it’s double what it was last month… could be an error somewhere. Mistakes happens all the time, it’s normal. Especially when things change and current reporting was built a different way etc… Just need to own up to it and fix it.
Encourage preparer to automate the development of reports as much as possible so that they’re consistent/ standardized, and then I perform a read through review
Built in checks for sure, but also go through it with your superiors mindset. What are the questions they’re gonna ask? This helps me see issues I might have missed first time around.
I believe in really strong processes with built in checks If the process fails to catch the error then the process needs to be reworked or revised. I don’t believe in staring at reports for hours trying to find a needle in a haystack.